Indian (SENSEX) stocks dropped, led by banks and power utilities, after the benchmark index rallied to a three-week high and the International Monetary Fund cut the nation’s economic growth forecast.
ICICI Bank Ltd. (ICICIBC) slid 2.4 percent, the worst performer in the S&P BSE India Bankex index. NTPC Ltd. (NTPC), the nation’s largest electricity generator, dropped 1.4 percent. Bharti Airtel Ltd. tumbled 2 percent after the company’s retail unit called off a partnership with Wal-Mart Stores Inc.
The S&P BSE Sensex lost 0.3 percent to 19,932.37 at 9:49 a.m. in Mumbai. The measure climbed to the highest level since Sept. 20 yesterday after the central bank eased liquidity curbs on lenders, rolling back emergency steps taken in July to boost the rupee. The IMF cut its forecast for India’s 2013 economic growth yesterday, warning that failure by U.S. policy makers to agree on raising its debt ceiling “could seriously damage the global economy” as President Barack Obama and Republican lawmakers continued to tussle over reopening the government.
The IMF cut its growth forecast for India to 3.8 percent, from a July prediction of 5.6 percent, and its 2014 prediction to 5.1 percent from 6.3 percent. The fund reduced its global outlook for this year and next as capital outflows further weaken emerging markets.
Global investors bought a net $130 million of domestic stocks on Oct. 7, taking this year’s inflows to $13.8 billion, data from the regulator show.
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